What Is the Status of the Clarity Act? In recent months, the U.S. Clarity Act has been a central focus for the crypto market. The bill aims to establish a comprehensive regulatory framework for the crypto industry, particularly by clarifying whether the U.S. Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC) should oversee different parts of the market. This is widely viewed as a positive step, as it would provide clearer rules for both crypto-native firms and traditional financial institutions looking to enter the space, ultimately supporting broader adoption.
However, progress stalled in January due to a tug-of-war between banks and crypto firms. The key point of contention is whether crypto firms should be allowed to offer interest or rewards on stablecoins. Crypto firms support this flexibility, while banks oppose it.
No agreement has been reached since then, and the timeline for passage remains uncertain. The ongoing conflict in the Middle East now also appears to have diverted political attention elsewhere. U.S. Senator John Thune noted last week that the bill is unlikely to advance before April. Meanwhile, Galaxy, a major U.S. crypto firm, warned that if the bill is not passed by then, the chances of it passing in 2026 are low, partly due to the November midterm elections.
BlackRocks Staked U.S. Ethereum ETF Launches: Last Thursday, BlackRock launched its first ETF that stakes a portion of its underlying cryptocurrency, in this case Ethereum. The firm’s existing U.S. Bitcoin and Ethereum ETFs are already among the most popular in their category. The new product, the iShares Staked Ethereum Trust ETF (ETHB), is expected to stake between 70% and 95% of its Ether holdings and distribute an estimated 3% annual yield from staking rewards.
The ETF launched with approximately $100 million in assets under management and saw $15.5 million in trading volume on its first day. It has since recorded $145 million in net inflows over its first four days of trading. This is a solid start.
To underscore the importance of these instruments, BlackRock’s existing Ethereum ETF has attracted nearly $12 billion in net inflows since its launch in July 2024. The addition of staking rewards could further strengthen Ethereum’s appeal to investors by providing a recurring yield component.
The Ethereum Foundation Publishes Mandate: The Ethereum Foundation (EF), the non-profit organization that supports and funds much of Ethereum’s development, published a new 38-page mandate last week. The document reaffirms its role as a neutral steward of the network, with a strong emphasis on decentralization, privacy and security rather than centralized control.
The mandate has generated mixed reactions. Some view the renewed focus on neutrality and decentralization as a strength, while others argue the foundation should take a more active role in driving demand for Ethereum. This includes fostering a stronger ecosystem of applications and encouraging greater institutional adoption.
